Bundesbank May Cut Rates

Reuters

Published 4:00 am, Wednesday, May 10, 1995

1995-05-10 04:00:00 PDT Frankfurt, Germany -- Two senior German central bank officials said yesterday there was a chance of another cut in interest rates this year if inflation could be brought further under control.

Reimut Jochimsen, president of the regional central bank in North Rhine-Westphalia, and Hans-Juergen Koebnick, president of the regional central bank for Rhineland-Palatinate and the Saar, both said they could not rule out a further easing. The Bundesbank, the central bank, last lowered two of its three leading interest rates in a surprise move at the end of March, taking the discount rate to 4 percent from 4.50 percent and its main money market rate, the repo, to 4.50 percent from 4.85 percent. It was the first easing in eight months.